Mater Dei Catholic High School, Breese, IL - 618-526-7216

Making a Planned Gift to Mater Dei Catholic High School "Sharing in the Mission: Today and Into Tomorrow"

The techniques of charitable gift planning include both revocable and irrevocable arrangements, gifts available for use at the time they are given and gifts that may not be available until a future date and split-interest gifts intended to balance financial, personal and charitable objectives. These techniques are called “planned gifts”.

Planned gift, deferred gift, estate gift - different names for a way to manage your affairs, plan for the future, and make a gift to Mater Dei Catholic High School, Breese, Illinois. Planned gifts are a variety of charitable giving methods that allow you to express your personal values by integrating your charitable, family and financial goals. Making a planned charitable gift usually requires the assistance of a knowledgeable advisor such as an attorney, financial planner, or CPA to help structure the gift. Donors should seek charitable gift planning advice from professionals with integrity, expertise, and experience in law, investments, property, tax and charitable transfers in order to assure both the technical merits of the transfer and the philanthropic quality of the gift.

Planned gifts can be made with cash, but many planned gifts are made by donating assets such as stocks, real estate, art pieces, or business interests – the possibilities are endless, considering all types of real and personal property and tangible and intangible assets. Planned gifts can provide valuable tax benefits and/or lifetime income for you and your spouse or other loved one. The most frequently-made planned gifts are bequests to charities, made through your will. Other popular planned gifts include charitable trusts and charitable gift annuities.

Many people want to make charitable gifts but need to do so in a way that helps meet their other personal, family, or financial needs. Planned gifts give you options for making your charitable gifts in ways that may allow you to:

Because of the legal and complicated technicalities involved with a few of the following planned gift programs some of them will need to be managed through a third party such as the Catholic Community Foundation of the Belleville Diocese or an investment broker of your choosing. However, the assets invested and the income derived will always continue to be part of Mater Dei Catholic High School.

These are the most common types of planned gifts and a variety of tools to help you and your advisors:

Income-Producing Plans: charitable gift annuities, charitable remainder trusts and pooled income fund.

Charitable Lead Trusts: support Mater Dei now and still leave assets to your heirs.

Bequests: make a gift by will.

Life Insurance: use a life insurance policy to make a substantial gift.

Pension Protection Act: good through December 31, 2009.

Planning Tools: publications and assistance for donors and professional advisors.

Letter of Intent: to let us know if you have already provided for Mater Dei in your estate plan.

Income-Producing Gifts

A number of plans allow you to make a gift to Mater Dei Catholic High School and receive an income for yourself and your beneficiaries. The most common plans are charitable gift annuities and charitable remainder trusts.

A charitable gift annuity is one of the easiest and most popular ways to make a charitable gift and receive fixed annual payments for one or two persons.

A charitable remainder trust makes variable or fixed payments to one to eight persons for life or for a term of years.

Charitable Gift Annuities

A charitable gift annuity is one of the easiest and most popular ways to make a charitable gift and supplement your income with fixed annual payments. You can establish a gift annuity with as little as $5,000 using cash or securities or, in certain cases, property.

In exchange for your gift which is being made to Mater Dei Catholic High School, the Catholic Community Foundation or Agent of your choosing, will pay a specified amount to two or more beneficiaries for life. The payout rate is determined by the age(s) of the annuitants. See the Gift Annuity Rates table for examples of rates at specific ages. Payments are backed by the assets of the Catholic Community Foundation or the brokerage that you choose. All annuitants must be at least 60 years old when payments begin and can be deferred to a later age. Payments can be made monthly, quarterly, semiannually, or annually. At the death of both annuitants, the remainder of the gift revert to Mater Dei Catholic High School.

ANNUITY PAYOUT AND CHARITABLE DEDUCTION FOR $10,000 SINGLE- LIFE, IMMEDIATE GIFT ANNUITY
(Based on ACGA rates)
Age of Annuitant	Annual Annuity	Charitable Deduction*
65	$ 600	$4,042
70	$ 650	$4,353
75	$ 710	$4,749
80	$ 800	$5,147
85	$ 950	$5,440
90	$1,130	$5,859
*This assumes quarterly payments and an AFR (Applicable Federal Rate) of 6.0%. The charitable deduction will vary with the current AFR and the frequency of payments (annually, semi-annually, quarterly, etc.). The annuity pay- out will be lower for two-life gift annuities. Gift annuity rates are subject to change. We’ll be happy to provide you with the exact figures for your situation.

Charitable Remainder Trusts

A charitable remainder trust makes periodic payments to one or more individuals for life(s) or for a term of years. Upon termination of the trust, the property remaining will be used for the charitable purpose you have specified. You may act as a trustee, or the Mater Dei Foundation can act as trustee if the trust is established with at least $100,000 and Mater Dei Catholic High School is designated to receive at least 50 percent of the remaining principal at the trust's termination.

There are two types of charitable remainder trusts:

Unitrust or CRUT: income fluctuates annually as a fixed percentage of the fair market value of the trust. This type is best for those who want to participate in market gains and can tolerate some risk. Allows the donor to bypass all or a portion of the Capital Gains Tax. Includes appreciated stock and real estate. Additional funding can be added to it without a new agreement.

Annuity trust or CRAT: income payments are fixed and determined when the gift is made. This is attractive to individuals who wish to avoid risk.

Charitable Lead Trust

A charitable lead trust (CLT) can provide significant charitable and tax benefits. During the term of the trust, a percentage of the assets is paid out each year to the Mater Dei program of your choice, and at the end, all of the remaining assets can return to you or pass to your heirs. Gift or estate tax paid on this gift can be reduced because the present value of the payments to Mater Dei Catholic High School is subtracted from the value of the gift.

This can be an excellent way to support Mater Dei Catholic High School and to pass on family business interests or other appreciating assets to family members with reduced taxes.

Bequests

When you leave a bequest to Mater Dei Catholic High School through your Will or Living Trust, you can make a generous gift without reducing your current income. Gifts in Wills or revocable trusts account for a major portion of the Mater Dei Foundation (Endowment) and provide significant funding for programs, facilities, and student aid at Mater Dei Catholic High School. You can also specify the particular programs that you wish your gift to benefit. You also can create special funds or endowed scholarships in your name or in memory of loved ones with a minimum gift of $25,000. Charitable bequests are normally deductible in full for estate tax purposes.

Bequest designations should be made to the Mater Dei Foundation Inc., which has been designated by the Foundation Board as the official title through the 501(3)c it holds.

Gifts of Life Insurance

If you have a life insurance policy that you no longer need, a gift of a life insurance policy can be a way to combine charitable objectives with tax advantages for you.

An irrevocable gift of life insurance may be appropriate when the growth of your assets or the reduced needs of your dependents make the policy unnecessary.

Because the tax laws regarding gifts of life insurance policies are complex, please contact the Office of Institutional Advancement at Mater Dei Catholic High School for assistance and direction with your specific insurance policy.

The two types of property that can be donated are tangible (such as a home, farm or collectibles) and intangible (such as stock and bonds). The tax deduction is equal to the FMV (fair market value) of what is donated. Property must have been held by donor for at least one year prior to donation. There is no tax owed by the donor on any appreciation the property has gained. The deduction usable is up to 30% of donor's adjusted gross income and there is a 5 year carry-forward of any unused deduction.

With gifts of a home or farm, one can make a gift of the property and receive the tax deduction and still continue to use the property for as long as necessary. One merely needs to indicate that they wish to retain the right to use the property for life (that is, live in the house or farm the fields) and upon the individual's death, the property reverts to Mater Dei Catholic High School.

A Retained Life Estate is a gift plan defined by federal tax law that allows you to donate your home or farm to Mater Dei High School while retaining the right to live in it for the rest of your life. As the creator of a retained life estate, you irrevocably deed to Mater Dei High School your home or farm, but retain the right to live in it for the rest of your life, a term of years, or a combination of the two. You may also use a vacation home to create this kind of gift. While you retain the right to live on your property, you continue to be responsible for all routine expenses - maintenance fees, insurance, property taxes, repairs, etc. If you later decide to vacate your property, you may rent all or part of the property to someone else or sell the property in cooperation with Mater Dei High School. When your retained life estate ends, Mater Dei High School can then use your property or the proceeds from the sale of your property for the purpose you designate. Subject to Mater Dei high School’s approval, retained life estate gifts are possible for people of any age but are most appropriate for people who are age 65 or older.

The Congress has passed legislation that allows an individual to make a distribution from their IRA or ROTH IRA up to the amount of $100,000.00 by December 31, 2009. The individual must be at least 70 1/2 on the date of the distribution and must be made directly to the charity. The distribution does count to satisfy minimum distribution requirements.

Mater Dei Catholic High School and the Mater Dei Foundation has put together a Will Planning Guide that can be used to help you in your Estate Planning. For a copy please contact Mater Dei Catholic High School at 618-526-7216.

PLEASE NOTE: With gifts of stock, one should donate appreciated stock (that is stock that has increased in value) and you have a tax deduction equal to its FMV. One should sell stock that has decreased in value and make a donation of the amount received. You then have two tax deductions: one for the amount you donated and one for the loss you incurred.

When you indicate to us that you have remembered Mater Dei Catholic High School in your Estate Planning, you will be entered into the Mother of Perpetual Help Society. This recognition society is meant to honor those individuals who have so generously considered a legacy for Mater Dei Catholic High School that will continue to benefit Mater Dei into the future.

We repeat what was mentioned at the beginning: Donors should seek charitable gift planning advice from professionals with integrity, expertise, and experience in law, investments, property, tax and charitable transfers in order to assure both the technical merits of the transfer and the philanthropic quality of the gift.